THE RESEARCH OF PROFITABILITY PERSISTENCE IN TURKISH BANKING SECTOR
Alper Aslan () and
Omer Iskenderoglu ()
Anadolu University Journal of Social Sciences, 2012, vol. 12, issue 2, 59-68
It’s expected that the increasing competition will influence the firms on many ways. Under the competitive environment, firm’s abnormal profits will erode. On this context, profitability of competing firms will not be persistent in the long run and therefore decrease. The hypothesis which proposes that, under competition conditions the profits over the norms will decrease has been tested on many empirical studies. In this study Persistence of Profitability (PP) is researched by Return on Assets (ROA) data on a panel model for 25 surviving Turkish banks for the period 1998 – 2009, by Seemingly Unrelated Regression (SUR) and MADF (Multivariate Augmented Dickey Fuller) tests. The results indicate that the competition affects the profitability and profitability is not persistent in Turkish banks.
Keywords: Competition; Persistence of profit; Turkish Banking System; SUR; MADF. (search for similar items in EconPapers)
JEL-codes: C23 G2 (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
http://www.anadolu.edu.tr/arastirma/hakemli_dergil ... 012_2/2012-02-01.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:and:journl:v:12:y:2012:i:2:p:59-68
Access Statistics for this article
Anadolu University Journal of Social Sciences is currently edited by Ramazan Geylan
More articles in Anadolu University Journal of Social Sciences from Anadolu University Contact information at EDIRC.
Series data maintained by Social Sciences Institute ().